Social Exclusion and Economic Growth: An Empirical Investigation in European Economies

Adalgiso Amendola and Roberto Dell'Anno

No 126, CELPE Discussion Papers from CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy

Abstract: The aims of this article are to propose an overall index of social exclusion and to analyze its relationship with economic growth in European countries. We approach social exclusion as a multidimensional phenomenon by a three-mode principal components analysis (Tucker3 model). This method is applied to estimate an indicator of social exclusion for 28 European countries between 1995 and 2010. The empirical evidence shows that in short run (a) Granger causality runs one way from social exclusion to economic growth and not the other way; (b) countries with a higher level of social exclusion have higher growth rates of real GDP per capita; and (c) social exclusion has a larger effect than the income inequality on the economic growth. The policy implications of our analysis is that social inclusion is not a source of economic growth in the short term.

Keywords: Social exclusion; Economic Growth; Multidimensional index; Three-mode principal components analysis (search for similar items in EconPapers)
JEL-codes: C82 D63 O15 O52 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2013-09-02
New Economics Papers: this item is included in nep-eec, nep-fdg and nep-soc
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Citations: View citations in EconPapers (4)

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Journal Article: Social Exclusion and Economic Growth: An Empirical Investigation in European Economies (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:sal:celpdp:0126

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